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AFIM-MB15
MBA-BM 2015-17: Term-V

Course Name : Advance Financial Institutions and Markets (AFIM)


Credits1.5
Faculty Name Asit Mohanty
Program MBA
Academic Year and Term 2015-17 batch
Term -IV


1. Course Description:The AFIM as an elective is intended to deal with intricacies of Financial Markets, Institutions and Instrument in details. The basic concepts discussed in the FIM course during 1st term will help the student to have fair understanding on the operations of various financial markets and the response of financial instruments in different market scenarios. The case studies will also be discussed to connect the students to the financial market. The ongoing developments in financial markets will also be discussed. The entire discussion on the financial market taking live data with empirical analysis and modeling. Student Learning Outcomes : At the end of the course the students should

· Be able to :understand the implication of various segments of short term markets on resource mobilization and the link with long term market.
· Be able to :understandPrice discovery in auction process in short term and long term instruments.
· Be able to: understand the price formation in both primary and secondary capital market.
· Be able to:appreciate the different routes for resource mobilasion in capital market
· Be able to : appreciate the role of secondary market to make the primary market more efficient.
· Be able to: establish the link between primary and secondary market
· Be able to: appreciate the role of regulators in the financial marke the link between primary and secondary market

2. Required Materials :
a) Text :

· Principles of Money, Banking & Financial Markets by Lawrence S. Ritter, William L. Silber and Gregory F. Udell, Addison, Wesley, Longman.

· A Pragmatist's Guide to Leveraged Finance: by Robert S. Kricheff , Published February 24th 2012 by FT Press · Indian Financial Markets by Ajay Shah, Susan Thomas and Michael Gorham- ( Elsevier)

b) Reference

§ Annual Report of SEBI
§ Annual Report- Reserve Bank of India
§ Annual Report of Ministry of Finance, GOI

C )Financial Website

v The Live Mint : www.livemint.com
v www.rbi.org.in/Scripts/financialmarketswatch.:Reserve bank of India..Financial Market Watch
v http://www.fimmda.org/ : Fixed Income Money Market and Derivatives Association of India
v http://www.ccilindia.com/OMHome.aspx: Clearing Corporation of India Ltd.
v www.amfiindia.com: Association of Mutual Funds in India
v http://www.stcipd.com/:STCI Primary Dealer Ltd.

d) Calculator :Financial Calculator

e) Analytical software: E-views and SPS

3. Tentative Session Plan:

Session
Topics Covered
1,2,3,4
Short Term Market

· Auction of Variable Repo
· Repo Accounting
· Interpretation of LAF transaction
· New Framework for LAF
· Auction Market of CBLO
· Auction Market of Market Repo
· Pricing of Treasury Bills
· Pricing of CDs and CPs
· Integration in Short market- Empirical analysis

5,6
Bond Market

· Auction Market in G-SEC
· Order Book in Secondary Market of G- Sec
· The relationship between Primary and Secondary Market in G-Sec: An Empirical Analysis
· IPO in NCD- Case Study
· Secondary Market of Corporate Bond Market
· Price Formation in Secondary Market
· Link Between Corporate Bond Market and G-Sec Market: Empirical Evidences
· Role of Primary Dealers
· International Comparison of Corporate Bond Markets with special emphasis on Emerging Market
· Principle of Law of One Price(LOOP)

7-10
· Process flow of IPO
· Case study
· Private Placement Market
· Market mechanism of OFS
· Book Building Process – Hand on with Mock Process
· Fixed Price and Multiple Price
· Allotment Mechanism to Different Categories of Investors
· Implication of Green Shoe Operation
· Stock Option, Bought Out Deals, First Track Issue
· Construction of Stock Index : NIFTY and SENSEX
· Impact Cost and Spread Analysis
· Stock Margin, Stop Loss Order
· Settlement Mechanism, Role of Clearing Houses
· Bonus Issue, Right Issue and their impact on Price
· Benefit of Dematerialization
· Money Flow Index
· Basics of HFT
· Depository Receipts
·



4. Evaluation components : The evaluation process is divided into three components.

i) Quiz and /or project assignment: 15-30% :You will be typically told in advance when a regular quiz will be given. The faculty also reserves the right to give any number of unannounced “pop” quizzes during the semester. The number of pop quizzes will be negatively related to the class’s level of preparation and participation. ii) Midterm : 20-30% iii) Class participation: 10-15% This could be comprised of attendance, response and overall positive demeanor in class. Your active participation in class is necessary, both for you and for your classmates. Your participation score will reflect the faculty’s assessment of your attendance, your contributions to class discussions, and your overall positive demeanor during class. iv) End term : 30-40% : This will be typically on the entire course ( pre and post midterm coverage) 5. Academic Integrity and Additional issues :

i) Students involved in academic dishonesty will receive a ZERO grade on the particular component in which the violation occurred. Academic dishonesty consists of misrepresentation by deception or by other fraudulent means such as copying or use of unauthorized aids in tests, talking during in-class examinations; aiding another student’s dishonesty; and giving false information for the purpose of gaining credits.

ii) COMPUTERS and MOBILES IN THE CLASSROOM: …are NOT allowed. No electronic devices that allow your access to the internet are allowed in the classroom.

Created By: Debasis Mohanty on 02/23/2016 at 10:54 AM
Category: BM-II 2015-17 T-V Doctype: Document

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